GUVERNMEN! UF KHYBER PAKH!| UNKHWA PLANNING & DEVELOPMENT DEPARTMENT Dated Peshawar, December 02, 2022. NOTIFICATION: No. SO(E)P&D/3-4/PIP/2022, In pursuance of the Rule-3(3) read with entries 3 & 8 under Planning & Development Department, Schedule-II (dealing with distribution of business amongst departments) of Khyber Pakhtunkhwa, Government Rules of Business, 1985, in exercise of the powers conferred to P&D Department under the said rules and in supersession of the Khyber Pakhtunkhwa Project Policy, 2008, the Provincial Cabinet, Khyber Pakhtunkhwa has been pleased to approve Project Implementation Policy, 2022 as a guiding paradigm/policy for all approved development projects of the Government of Khyber Pakhtunkhwa. Planning & Development Department will be the custodian of the subject policy. SECRETARY P&D DEPARTMENT ENDST: NO. & DATE EVEN. Copy forwarded to the; Senior Member Board of Revenue, Revenue & Estate Department. Principal Secretary to Governor, Khyber Pakhtunkhwa. Principal Secretary to Chief Minister, Khyber Pakhtunkhwa. All Administrative Secretaries to Govt. of Khyber Pakhtunkhwa. PSO to Chief Secretary, Khyber Pakhtunkhwa. All Divisional Commissioners in Khyber Pakhtunkhwa. All Deputy Commissioners in Khyber Pakhtunkhwa. All Senior Chief of Sections/Chief of Sections in P&D Department. All Heads of Attached Departments. Incharge, Resource Centre, P&D Department with the request to upload the Project Implementation Policy on official web-site of P&D Department. SEPNOMAONS DEPUTY SECRETARY-|tae aii tela) Lain He esi anal CITE MONITORING © E17 RUT) FINANCIAL MANAGEMENT taal (et Ta ae Se MANAGEMENT PROJECT MANAGEMENT KHYBER PAKHTUNKHWA PROJECT IMPLEMENTATION POLICY 2022o®@® co oc oc el KHYBER PAKHTUNKHWA PROJECT IMPLEMENTATION POLICY 2022Preface The Planning and Development Department Khyber Pakhtunkhwa is continuously striving to improve the pace of development in the province. Formulation of Project Implementation Policy (PIP) is another such effort to improve the preparation, execution, monitoring and evaluation of development projects in the province. Project Implementation is a complex process consisting of setting up of PMU, human resource management, financial management, procurement management, monitoring & evaluation and revision of projects, The 2008 project policy of the provincial Government covered the Human Resource component only. In the absence of a detailed policy document, there was always a chance for uninformed decisions based on a lack of knowledge, arbitrariness or bias. A need was therefore felt to develop a comprehensive policy document to streamline the whole process of project implementation and guide the stakeholders. The PIP is the first-of-its-kind policy instrument in the history of the province, which covers all aspects of project implementation. The Project Implementation Policy (PIP) covers the implementation process of development projects holistically. It has been divided into 14 chapters, ie. General Principles, Transition into Project Implementation, Establishing Project Management Unit (PMU}, Human Resource Management, Revenue Clearance, Procurement Management, Operational/ Project Management, Financial Management (Accounting and Auditing), Institutional Arrangements for Project Implementation, Monitoring and Evaluation, Project Revision, Out-Transition / Project Closure, Advice of Approval Forums and Provisions related to special types of projects. Each chapter deals with a specific aspect of the implementation process. The updated version of Project policy 2008 has been made part of the Human Resource Management chapter of the Project Implementation policy. The policy was developed after a detailed study of the relevant laws, rules, policies and various issues encountered related to projects. Series of meetings were held under the chair of the Chief Secretary, Additional Chief Secretary, Secretary Establishment, Secretary Finance and Secretary P&D, where detailed discussions were held on all aspects of the new policy. It has been ensured that the policy is in conformity with other prevalent policies and rules dealing with project implementation, either explicitly or impliedly. The policy shall be applicable to all projects being funded by the Annual Development Plan (ADP) of the Provincial Government, Public Sector Development Program (PSDP), executed by the Provincial Government, Accelerated Implementation Program (AIP), ADP for Merged Areas and special categories projects. The document would improve the quality of decision-making at all levels. It would enable both the planners and implementers to make informed, efficient and timely decisions leading to risk reduction in all the phases of project management. Being a live document, all suggestions for its correction, amendments, improvements. etc, are welcomed. Shah Mahmood khan Secretary Planning and Development Department Government of Khyber PakhtunkhwaTable of Contents Acronyms Introduction Objective of Project Implementation Policy (PIP) Scope of Project Implementation Policy (PIP) Relationship of Project Implementation Policy with Other Policies Relation with existing Project Policy Structure of Project Implementation Policy Chapter 1: General Principles Understanding PC-| Forms Key Supporting Documents for PC-1 Sustainability Ownership and Responsibility Evidence-Based Planning Applying PIP to Current Projects Being Mindful of Diversity and Inclusion Community Engagement and Feedback Mechanisms Project Phasing Inception Phase Operational Phase Closure Phase Chapter 2: Transition Into Project Implementation Notifying the Project Director Reporting Hierarchies Inception Phase HR Financial Management Notifying Relevant Committees Additional Steps Chapter 3: Establishing Project Management Unit (PMU) Financial Limits Mandating a PMU Other Considerations for Establishing a PMU Utilizing Existing PMUs for Projects of Like Nature Civil Infrastructure Schemes or Projects Large Scale, Multi-Component Projects Complex and Non-Traditional Projects Execution Through Autonomous Bodies or Public Sector Companies o1 02 o2 02 03 04, 04 05 os 06 06 o7 o7 o7 o7 o7 07 08 08 09 09 09 09 09 10 10 10 un N n N 1 R 12 2Execution through Autonomous Bodies or Public Sector Companies Projects without PMUs Housing the PMU. Renting Space for PMU Procurement of Office Furniture, Equipment, and Cars HR for PMU Outsourced Functions in PMU. Operational Expenditures Chapter 4: Human Resource Related Provisions Recruitments Using Project Implementation Policy Recruitments Using Recruitment Policy for Market Based Talent Recruitment Using MP Scales Policy Customized Mode of Recruitment Engaging Human Resource Through Third Party Firms Hiring of Project Staff Under KP Procurement Regime Process of Recruitment Under Various Modes Chapter 5: Practise of Revenue Clearance Revenue Clearance at Finance Department Instances Where Revenue Clearance may be required at Finance Department Revenue Clearance at P&D Instances Where Revenue Clearance may be required at P&D Revenue Clearance for HR Chapter 6: Procurement Management for Projects Relevant Rules for Procurement Mode of Procurement Procurement Process Constituting Committees for Procurements in Projects Procurement Committee Procurement Sub-Committees Relevant Rules for Procurement Mode of Procurement Supply Chain Management Service Level Agreements Procurement of Machinery & Equipment, Furniture or Other Items. on Placement Basis/ Rental Mode with Guaranteed Load Utilization of Procured Items Variation of Estimated Amounts from Bid Amount Chapter 7: Operational/ Project Management Project Conception Project Implementation PlanTechnical Support Design Consultants & Resident Supervision Certification Logistics Support Management (Accounting and Auditing) of Projects Chapter 8: Finan: Responsibilities of Project Director as Drawing and Disbursing Officer (DDO) Financial Phasing of the Project Financial Forecasting Projects with Exemptions Provision of Funds and Release Mechanism Authorization of AG Releases According to Financial Phasing Assan Assignment Account Opening of Commercial Account Assan Assignment Account Opening of Commercial Account Maintenance of Petty Cash Re-appropriation of Funds within the Budgetary Allocation Need for PC-I Revision Based on Financial Changes Audits Pre-audit Audit by DG Civil Audit Audit by Third Party Clear and Discrepant LC Documents. Chapter 9: Institutional Arrangements for Project Implementation Project/ Programme Steering Committee Requisite for Establishing Steering Committees as Institutional Arrangements for Project Implementation Chapter 10: Monitoring and Evaluation Monitoring Staff Project Monitoring Committee Project Monitoring Tools PC-IV Forms Risk Assessment Chapter I: Revision Extension in Scope of Civil Works as a Result of Revisions Chapter 12: Out-Transition / Project Closure Closure of PMU HR Discharge 49Integration of Project into Steady-State Service Delivery Financial Closing Closure of Designated Bank Accounts Transfer of Remaining Funds Closure Audits Financial Audits Project Closure Audits Chapter 13: Advice of Approval Forums 51 Chapter 14: Provisions Related to Special Types of Projects 52 Restructuring of Organization and Institutional Development Land Acquisition PC-ll Different Funding Sources PSDP, HDF, FPA PPP Projects Civil Infrastructure ProjectsoO Acronyms KPRA KPPRA Le NTN P&DD Pc-l PD PDA PDwP PHE PIP PKHA PMU Psc PspP Ppp SNE WeBoc Autonornous Bodies Annual Development Programme Accelerated Implernentation Programme Communication and Works Departrnent Chief Planning Officer District Development Committees Drawing and Disbursement Officer Departmental Development Working Party Extraordinary Leave Finance Department Free Tax Number Khyber Pakhtunkhwa Khyber Pakhtunkhwa Revenue Authority Khyber Pakhtunkhwa Public Procurement Regulatery Authority Letter of Credit National Tax Nurnber Planning and Development Department Planning Commission form nurnber 1 Project Director Peshawar Development Authority Provincial Development Working Party Public Health Engineering Department Proje Implementation Policy Pakht nkhwa Highways Authority Project Management Unit Public Sector Companies Public Sector Development Projects Public Private Partnership Schedule of New Expenditure Web Based One Custorns02 Introduction In pursuance of Rule 3(3) read with entries 3 & 8 under Planning & Development Department,! Schedule-Il (dealing with distribution of business amongst departments) of Khyber Pakhtunkhwa Government Rules of Business, 1985 notified vide No. SO(O&M) S&GAD/3-3/1985 dated 6th April, 1985 and amended from time to time, and in exercise of the powers conferred to P&D under the said rules, the Project Implementation Policy is being notified as a guiding paradigrn/policy for all approved development projects of the Government of Khyber Pakhtunkhwa Objective of Project Implementation Policy Project execution is far more comprehensive and complex than the Human Resource component only. The previously issued project policy has been issued under Section 25 of KP Civil Servant Act, 1973 and thus essentially focuses only on human resource functions. Other areas such as setting up of PMU, financial management, procurement management, institutional mechanisms for project management, monitoring & evaluation of projects, and revision of projects based upon execution needs to be covered in a holistic manner. This Project Implementation Policy (PIP) intends to cover all these areas. Moreover, there are other important policies/ rules covering certain areas and providing for the extent of power function vested in the executing agency. Thus, it is important to bring relevant provisions under one umbrella and explain the manner in which these powers/ functions shall be executed. PIP intends to serve as this overarching instrument to cover every aspect of implementation holistically. The ultimate objective is to facilitate executing agencies in fast tracking implementation of approved projects by elaborating areas those are not previously covered. Scope of Project Implementation Policy Applicability: The policy shall be applicable to all projects being funded by ADP, PSDP (provincially executed projects), AIP or any other project falling under the development portfolio, including special category projects (e.g. projects those are part of development portfolio and have foreign component, HDF component or PPP component or any other such area). However, in case of these special category projects, the provisions of PIP shall be read along with provisions of any policies, rules, practices and contractual obligations dealing with such projects. Nature of Projects Being Covered: the nature of development projects over the years has undergone significant expansion from traditional civil infrastructure projects to covering broad areas, such as micro finance loans, stipends, cash hand-outs, innovative Appraisal, monitoring and evaluation of development projects and programmes, Determining pelicies for approval review and monitoring of development schemes for Governmentos financing arrangements such as financing interest payments/ default risk, projects involving outsourcing of services, management contracting, _restructuring/ strengthening of organizations, rental arrangements for services/ equipment/ vehicles/ supply chain & warehousing etc. This PIP aims at covering all such innovative projects Moreover, certain explanatory provisions dealing with land acquisition guidelines, and feasibility schemes (to be executed in PC-II mode) have also been included in this PIP. Execution Agency: The Project Implementation Policy shall be applicable to all projects being funded through development portfolio regardless of executing agency whether it is administrative department itself, or any of its attached entities (directorate or any unit), autonomous body, or public sector company, or any other such unit. The role of Executing Agency shall remain in its own defined legal frarnework, with other options allowed by the client organizations/entities as permissible under legal and regulatory framework Relationship of Project Implementation Policy with other Policies Project Implementation Policy shall be read and interpreted in backdrop of following other policies and rules in vogue dealing with project execution either explicitly or impliedly (so far as possible, referencing to these provisions has been ensured in instant policy). These include: mt Khyber Pakhtunkhwa Government Rules of Business, 1985, notified vide No. SO(O&M) S&CAD/3-3/1985 dated 6th April, 1985 ™ KP Annual Development Programme Policy, 2019-23 Khyber Pakhtunkhwa Delegation of Financial Powers Rules, 2018, notified vide letter NO.SO(FR)/FD/9-1/2018/DOP/I7441 Khyber Pakhtunkhwa Public Procurement of Goods, Works and Services Rules, 2014, notified vide letter No.SO (FR)/FD/9-7/2010/Vol-|, and as amended from time to time Ml Recruitment Policy for Market based Talent vide No SO(Policy)/ E&AD/1-10/2019 dated 10th October, 2019 I Assan Assignment Account Procedure (Local Currency), 2020, approved by Finance Division, Islamabad vide No. F.2(2)B1/2008/2020-1081 and circulated by the CGA vide No.1376/CGAVA.A/RP-2018 (L.C), dated 26.10.2020 KP PFM Act 2022 and provisions as in line with the provincial manual for the development projects KP 2022 Furthermore, provisions of the Manual for Development Projects have been intuitively incorporated while forrnulating the Project Implementation Policy. The instant project implementation Policy refers to many provisions as per current practice/ authorization in vogue. In case of change in such policies (like opening of Assan Assignment Account, KPPRA rules, Delegation of Financial Powers etc), the provisions of those amended policies shall prevail wef. the date of such arnendment. The Project, Implementation Policy shall be deemed to be amended, mutatis mutandis, to the extent of those provisions.04 Project Implementation Policy and Project Policy 2008 KP policy regulating appointment to posts in development projects, 2008, along with amendments has been made part of the project implementation policy as a preferred/first mode of engagement/ecruitment of staff for first level and mid-level managerial/ technical positions. In addition, for specialized positions, option of ‘Recruitment Policy for Market based Talent’ is also available. In case KP Government adopts MP-Scale policy, it will also become an option for specialized recruitments. It is reiterated that the Project Implernentation Policy is meant to be understood in conjunction with existing policies or rules and any other relevant policy instruments. Structure of Project Implementation Policy The Project Implementation Policy has the following chapters: Chapter I: General Principles Chapter 2: Transition in the Execution of Project Chapter 3: Establishing PMU Chapter 4: Human Resources Related Provisions ‘Chapter 5: Practice of Revenue Clearance Chapter 6: Procurement Management of Project Chapter 7: Operational/ Project Management Chapter 8: Financial Management {Accounting and Auditing) of Project Chapter 9: institutional Arrangements for Project Implementation Chapter 10: Monitoring & Evaluation Chapter II: Revision of Project Chapter 12: Project Closure/ Transition Out of Project Chapter 13: Advice of Approval Forums Chapter 14: Provisions Related to Special Types of Projectsos > Chapter |: General Principles The Project implementation Policy (PIP) is prospective in nature. However, this section lays out the principles which shall help in improving the quality of project documents such as PC-|, ultimately leading to improved implementation of projects. Similarly, so far as possible, these shall be adhered to during revision of these PC-Is. Understanding PC-| forms Any well designed project has to come from a well drafted PC-I form. The PC-| form shall be treated as a project implementation document, rather than just an instrument to access development funding. This implies that a PC-I form shall mention all necessary steps required to implement the project. Three key aspects of a well drafted PC-I include; ()_ Key Supporting Documents (ii) Sustainability i) Ownership and Responsibility Key supporting documents for PC-1 All PC-Is should include, as far as possible, detailed documentation of the following; Implementation Plan An implementation plan should be drafted using tools such as Gantt Charts, or any suitable alternative representation of implementation steps. The implementation plan should clearly outline which sub-activities need to be undertaken at what time during the project life cycle, in order to carry out the main activity to completion. The more detailed an implementation plan, the better the overall execution of the project. Procurement Plan and Procurement Committees The PC-I form should also include a detailed procurement plan, along with proposed procurement committees. Additionally, to the extent of suggesting possible mechanisms for timely procurements, Grievance Redressal Mechanisms and Committees shalll also be included in the PC-| form Human Resource Plan Any project does not necessarily start off with a fully formed team. Recruit ments of good quality staff, ensuring that the right person is hired for the right job, and good HR management such as HR appraisals, are crucial steps needed to ensure proper HR management. Therefore, all PC-1 forms should identify a detailed HR plan. The HR plan should ideally identify the posts required, their job descriptions, minimum qualifications, experience required, pay packages, and appointing authority. Any hiring should be done according to these specifications, and due diligence, eg, verification of experience certificates from issuing authorities may be undertaken before hiring. Additionally, projects should aim for a more dynamic mode of hiring, such that contractual provisions require a three month probation period upon hiring, during which contract termination can be done without notice; subsequently, a thirty day notice period may be given for any termination of contract, regardless of whether request for termination was initiated by the resource, or the project.06 Financial Plan Asa critical component of project execution, financial plans are not just important; they remain a necessity for the financial health of the project. Thus, all PC-Is should have, as far as possible, detailed Financial Plans, along with expected financial phasing needs Cash Flow Plan Each PC-| should aim to include a cash flow plan, which can help feed into the financial phasing of the project. Risk Register Any venture is prone to risk. But timely risk identification, management, and mitigation can help increase the risk appetite for projects. Thus, all PC-Is should have a detailed risk register, and risk mitigation plan Monitoring and Evaluation Plan Well-drafted PC-Is should identify critical and responsive KPls that may be measured over time. This includes identification of certain outcome, output, process, and input based KPls which can be tracked throughout the life cycle of the project. Thus, each intervention being undertaken shall have clear linkage with output and outcome indicators. Well-drafted PC-Is should also identify means of verification for each indicator that can be tracked throughout the life cycle of the project. Capacity building plan For projects where the focus may be on service delivery, as opposed to traditional brick and mortar projects, capacity building may be needed to ensure that staff involved in service delivery is capacitated enough to take on their jobs in a safe and responsible manner, Exit Strategy For projects where the airn is to introduce and institutionalize service delivery innovation in particular, or for other innovative projects such as cash handouts etc, a viable exit strategy must be included in the PC-, outlining how the project will be phased out. Sustainability While innovation is appreciated, sustainability should be the focus of all projects. Hence, all projects, by virtue of their PC-Is, should identify how sustainable impact will be generated from project activities Ownership and Responsibility Successful implementation of PC-I remains the responsibility of the administrative department that prepares the original/ revised PC-I. The Administrative Department needs to ensure that PC-Is, and by virtue of PC-ls, all projects, are carried out as best as possible.07 Evidence-based Planning All PC-Is should be based on utilizing statistics and data to as far an extent as possible, to ensure that any project is driven by verifiable data and evidence Applying PIP to Current Projects In cognizance of the fact that the PIP will be implemented within an ongoing development eco-systern, any PC-Is that are already in implementation may continue until any future revisions are needed, All revisions shall incorporate these principles including already notified (if any) procurement, recruitment committees and any other committees may be made part of revised PC-1 Being Mindful of Diversity and Inclusion So far as practicable, any project or intervention having significance in terms of inclusiveness for minorities, marginalized communities, or differently abled people, gender mainstreaming, environmental effect/ climate change resilience, energy efficiency (including focus on renewable energy) shall be highlighted. P&D and other departments of the Government of Khyber Pakhtunkhwa shall support the project and create an environment conducive to attributing and compiling these efforts Community Engagement and Feedback Mechanisms The primary aim of any project remains the social or economic uplift of the people, to the extent that projects are usually aimed at bettering public service delivery. Itis critical that the project should speak to the needs of the public. To do so, it is suggested that open channels of communication may be maintained with communities and people who will be impacted by any project. These channels of communication can be e-based, through social media, or in-person communication. Ultimately, the airn of this community engagement should be to establish a vibrant and transparent feedback mechanism, whereby community stakeholder feedback can be used to adjust projects if need be. Project Phasing For any project, it is important to recognize that three distinct phases constitute the entire project cycle; inception, operations, closure. These phases are explained below. Inception Phase The inception phase of the project can last between 3 to 6 months from the commencement date of the project (the date on which the Administrative Approval was signed), depending upon the nature of the project. It is to be noted that during the inception phase only skeleton staff may be available, in the form of a lean leadoff team. This leadoff team should be able to initiate key functions such as: I Initiate recruitments such that all recruitments can be completed by the time the inception phase ends II Initiate banking processes and streamline financial processes II Initiate baselines, such as baseline development and data collection processes08 Operational Phase The operational phase of the project will start after 3 to 6 months of the project commencement, depending upon the nature of the project, and the length of the inception phase. During this phase, the project is expected to have the following: I 100% staffing to ensure that all activities if the project can be initiated. As the heaviest phase of the project, in terms of work and activities undertaken, the operational phase will require a completely staffed team Timely initiation of procurements, civils works, and any other activities listed in the implementation plan Routine monitoring of physical and financial progress, and tracking of all key indicators to identify bottlenecks and critical points for project course correction Closure Phase The closure phase can last between 3 to 6 months at the end of the project. While project staff can be present, a skeleton team will be required to oversee the final documentation of the project. This skeleton team will be responsible for: I Closing financial accounts Conducting audits, if need be 1 End line monitoring, especially if a PC-IV has to be prepared. It is imperative that monitoring and evaluation staff be involved in, and possibly even lead, the preparation of PC-IV forms09 > Chapter 2: Transition into Project Implementation Consequent upon approval of the PC-I form by the concerned approval forum, the administrative department shall issue Administrative Approval that is construed to be the official commencement date of the project. Project implementation provisions for ‘transitioning-in’ into a project, mentioned in this chapter, are general and may be used as guidelines. However, the Administrative Department may adopt their own steps, ifneed be Notifying the Project Director After issuance of administrative approval, both in case of a full time Project Director, or ex-officio Project Director, the administrative department shall notify the Project Director (or any other appropriate designation as mentioned in the PC-I) for the project. The PD shall be notified soon after issuance of AA preferably within one month. In case there is a full time PD, the same be notified with full powers in accordance with Delegation of Financial Powers Rules 2018 and GokP procurement rules 2014 enabling hirn/her to take full charge and act with authority. In no case the project shall be run on additional charge basis for more than six-month period. The PD shall be hired through any swift mechanism permissible under PIP. The Government employees may also participate for hiring but in that case they will have to proceed on extra ordinary leave (EOL). As far as posting through deputation is concerned, the appointing authority shall also consider the relevant experience and qualification of the officer before such appointment. Reporting Hierarchies The notification of project director role shall deem to transition the project from the Planning Cell of the Department (such as CPO wing), to the PD of the project. In order to expedite the communication related to project items, PD may directly submit all cases (if any) to administrative Secretary or through Special Secretary or any other officer in-charge of development matters, rather than through Planning Cell of the Department. Inception Phase After the approval of the administrative Secretary, the PD shall undertake key steps to ensure that the project is initiated efficiently. These steps are outlined below: Human Resources Leadoff Team Upon the approval of the administrative Secretary, and notification of PD, additional charge of key positions shall be provided to the most suitable individuals available within the department or any of its attached departments/ entities (including ABs/ PSCs)Project Posts for PMU or Service Delivery In case the project requires recruitrnent of HR for the Project Management Unit (PMU), PD shall start the recruitrnent process by giving advertisements as required under relevant provisions of this project implementation Policy. With regard to any of the service delivery positions provided in the PC-| (any post that is not part of PMU), PD, after recording reasons, may proceed with recruitment of such staff as per relevant provisions governing this. Ideally PD shall be appointed first through head hunting or through any fasted mechanism; the rest of the team shall be hired once the PD is on board Financial Management PD shall also send the case for release of fund, through the Planning Cell (such as CPO wing), to the Finance Department in respect of allocation for the year. However, to expedite the processing, PD may send an advance copy directly to the Finance Department. In addition, PD may also process cases for opening of Assan Assignment Account and/or designated account [if required), justifying the need for them. Assan Assignment Account permission is granted by Administrative Secretary whereas for designated account, Finance Department will grant the requisite permission. In case the project requires, PD shall also get necessary documentation for NTN/ FTN/ WeBOC or any other registrations like KPRA or social security etc. Notifying Relevant Committees PD shall also notify all other committees such as Procurement Committees, Project Steering Committee, or any other committees either mentioned in PC-I or otherwise required for smooth implementation. The PC-I may list indicative ToRs for all proposed committees. Additional Steps In addition, PD shall take all other necessary measures that are required by the peculiar nature of the project. The PD must be empowered to exercise all his powers in light of DOP 2018, Project Implementation Policy 2022 and as approving authority being head of procuring entity under KPPRA Procurement Rules 2014. This shall notified by the concerned approving forum i.e. DDWP and/or PDWP etc.> Chapter 3: Establishing Project Management Unit (PMU) Project implementation is a specialized task and timely execution of a project requires focused and dedicated effort. Delays in execution lead not only to cost escalation, but also delayed service delivery. Key considerations for establishing a Project Management Unit (PMU) are provided below. Financial Limits Mandating a PMU P&D may issue instructions frorn time to time to define financial limits that make it mandatory for any project to have a dedicated PMU. However, as a starting point, the following financial limits may be used: Noord Status of PMU Rs 1Billion plus Fulltime dedicated PMU Preferably dedicated PMU, though Administrative Ce or co elon Department may decide not to have Administrative Department to decide. However, PMU cost Ce) shall preferably be less than 5 percent of project cost Other Considerations for Establishing a PMU Following are additional considerations while deciding upon PMU structure and role. These considerations can ensure that any PMU remains a high functioning and efficient unit. Utilizing Existing PMUs for Projects of Like Nature For projects of like nature, where a PMU exists for an ongoing project, one PMU may cater for more than one project. The subsequent PC-| may refer to the ADP scheme under which PMU has been established. In such cases, where a PMU already exists, and another project is assigned to it, the subsequently assigned PC-I ray provide for strengthening of existing PMU through additional HR or operational budget. Civil Infrastructure Schemes or Projects For schemes involving civil infrastructure only, to be executed by dedicated agencies like C&W, PKHA, PDA, other works departments (irrigation, PHE and others) etc, the provision of dedicated PMU may be dispensed with. If, however, the Executing Agency does not have the requisite expertise for carrying out the scheme or project, it may engage a short-term or along-term expert of the relevant discipline.Large Scale, Multi-Component Projects For large-scale projects, involving multiple components such as civil works, procurements, recruitments, setting up a management structure etc., establishing a smart PMU shall be the preferred option. Even if recruitments are carried out through the current side against SNE posts, a dedicated PMU shall ensure that all these steps are tracked and supported, The team for such projects may also be hired from the market on contractual basis fully. Complex and Non-Traditional Projects For complex/ non-traditional projects, particularly involving procurements, recruitments, stipends, and financial support dispensation (either directly or through intermediate financial institutions) etc., setting up of a dedicated PMU shall be the preferred option, The team for such projects may also be hired from the market on contractual basis fully. Execution through Autonomous Bodies or Public Sector Companies In cases where the execution of project is done through Autonomous Bodies (ABs)/ Public Sector Companies (PSCs), the provision of a dedicated PMU may still be a preferred mode; yet depending on capacity of respective AB/ PSC, provision of a dedicated PMU may be dispensed with. Projects without PMUs In cases, where the administrative department prefers not to have a dedicated PMU, the department shall still notify an ex-officio project director, who shall carry out necessary steps mutatis mutandis as referred in above chapter of Transition into project. Housing the PMU The housing of any PMU may preferably be within the administrative department, However, in most cases, due to space deficiency within existing buildings of the administrative department or its attached bodies, the option of housing the PMU in a rented building may be explored. Renting space for PMU The prescribed procedure may be adopted while selecting office space for PMU. Usually, in such cases, some rent is required to be paid in advance. For such purposes, an approval may be obtained from Finance Department under relevant provisions, such as the Second Schedule of the Khyber Pakhtunkhwa Delegation of Financial Powers Rules, 2018, notified vide letter NO.SO(FR)/FD/9-1/2018/DOP/17441KP. Good practices of office management including co-working space/ work stations, and smaller conference room-cum-work stations may be adopted. Separate offices may be restricted only for Project Director.Procurement of office furniture, equipment, and cars The procurement of office furniture and equipment shall be carried out on priority, to ensure that PMU is functional in the least possible time. These items shall be part of PC-L Relevant provisions, such as Chapter II (Methods of Procurement of Goods) of Khyber Pakhtunkhwa Public Procurement of Goods, Works and Services Rules, 2014, notified vide letter NoSO (FR\/FD/9-7/2010/Vol-II shall be followed for procurement of furniture and equipment. The growing tendency of using PMUs as a tool to procure vehicles needs to be discouraged. While the instant policy allow for procurement of vehicles for project usage, the preferred mode in this regard is entering into contract, following relevant provisions, such as Chapter Ill (Procurement of Works and Non-Consulting Services) of Khyber Pakhtunkhwa Public Procurement of Goods, Works and Services Rules, 2014, notified vide letter No.SO (FR)/FD/9-7/2010/Vol-Il, for rent-a-car model. This allows greater flexibility and more efficient utilization of resources without creating any long term liability and is deemed to be effective in restricting utilization for office use only. Either models of rent-a-car, vis-a-vis monthly mode and/or daily mode may be adopted. Similarly, driver, POL and repairs and maintenance shall be part of agreed contractual terms with the service provider, in addition to preferable presence of tracker in these vehicles, Ultimately, procurement of office furniture, equipment, and cars, shall enable projects to utilize finances more efficiently, and reduce the cost of purchase of durable assets as well as to reduce incremental operating cost (IOC) related to the project. HR for PMU PMU shall comprise mostly of managerial and technical personnel. They may be recruited using any of the methods as outlined in the HR chapter of this policy. The practice of using PMUs asa source of employment for support staff shall be discouraged The managerial and technical staff shall be placed in a flat hierarchy and they shall carry ‘out their work themselves rather than getting ministerial support in the form of Stenos, Assistants, Senior Clerks, Junior Clerks ete. These ministerial roles shall not be allowed for PMUs under instant Project Implementation Policy. Instead, the Project should aim at hiring experts who have demonstrated experience in relevant fields, to create a high-functioning body which can deliver on its objectives and results. Similarly if the project is of complex nature, or requires specialized technical expertise of consultants, after making necessary budgetary provisions in PC-|, relevant provisions such as Chapter IV (Procurement of Consultancy Services) of Khyber Pakhtunkhwa Public Procurement of Goods, Works and Services Rules, 2014, notified vide letter No SO (FR\/FD/9-7/2010/Vol-!| may be followed for procurement of consultant for design, or any other support. These provisions may be used to procure services of individual consultants/ firms. Outsourced functions in PMU Support functions such as janitorial, security, office boys, MEPG services (Mechanical Electrical Plumbing and generators), gardeners etc. shall preferably be outsourced using relevant provisions of KPPRA. Since the instant policy envisages rent-a-car model as preferred mode for transportation services hence, no driver shall be recruited under instant policy.imilarly, if the nature of project so requires, PMU shall also procure services of warehousing, supply chain and transportation and/or any third party services, as project nature may require. Operational Expenditures The operational expenditures of PMU, such as salary of PMU employees, utilities and other non-salary expenditures may be spent as per prescribed procedure after getting val of Project Dire processing of such small individual bills may not be the most efficient process. Hence, after getting approval frorn Finance Departrnent under Khyber Pakhtunkhw Delegation Financial Powers Rules, 2018, notified vi lett NOSO(FR\/FD/9-1/2018/DOP/I744IKP, the Project Director may obtain a monthly limit against which the funds may be drawn from Assan Assignment Account other fund center, and deposited into designated bank account authorized for this purpose by Finance Department.d Chapter 4: Human Resource Related Provisions Any project PC-I may require recruitments for PMU or any of service delivery posts. The project may opt for one or more modes for different types of personnel to be recruited against various positions. It is suggested that the PC-I may identify which mode of recruitment the project will opt for. However, should the PC-| remain silent on mode of recruitment, the default mode of recruitment shall be assumed to be recruitments under this policy, unless the competent authority allows for an alternative mode after due diligence is conducted. All these positions/ recruitments shall be on contract basis and shall not be liable to regularization under any circumstances. The instant chapter deals with modes of recruitment as well as the preferred mode for different types of positions. The available modes are: IE Method of appointment to posts in development projects provided in this policy below Recruitment Policy for Market based Talent vide No SO(Policy)/ E&AD/I-10/2019 dated 10th October, 2019. lm KP Government's adoption of MP-Scale policy, as an option for specialized recruitments Customized Mode of recruitment as defined in PC-I and approved by PDWP (it shall be applicable only for projects approved by PDWP / higher forums and shail not be applicable for lower forums such as DDWP, DDC ete. I Customized mode of recruitment I Engaging HR through Third Party Firms Process of recruitment under various modes, Recruitments for Development Projects Under the Policy Method of recruitment given here shall apply to all posts in the approved development projects funded fully or partially by the Provincial Government or controlled by the Provincial Government. Terms and conditions for appointment under the policy shall be made part of the PC-| to be approved by the relevant approval forum. Project posts which have already been advertised shall be filled based on Project Policy 2008. Project posts in approved projects which are yet to be advertised, may be filled through this policy, after approval of the P&D Department. (2) NOMENCLATURE AND PAY SCALES / PACKAGES OF THE POSTS (i)_As far as possible, nomenclature of the posts and pay scales should be such that it exists in the regular service cadres of the Department and for which service recruitment rules have already been prescribed. The educational qualification, experience, age limit, scale of post, pay package, number of posts, duration of appointment and responsibilities etc, of each post sanctioned for the project shall be prescribed in the PC-|. Moreover, selection on project posts through initial recruitment or by way of deputation shall also be specified. Furthermore, the required scoring matrix for the purpose of shortlisting and final merit list, as mentioned at Gil) from (a) to (d), shall also be specified for each category of posts. (iii) Fixed pay package for project posts shall be sanctioned at the time of approval of PC-I with reference to the responsibilities attached to the post. Fixed package with reference to various pay scales shall be as follows:eg eae Cr ure yi tattiy oa (Rs) 1 BPS3-4 25,000" 1,250 37,500 2 BPS 5-8 25,000 1,250 37,500 3 BPS 9-10 35,000 1,750 52,500 4 BPS 11-13 40,000 2,000 60,000 5 BPS 1415 55,000 2,750 82,500 6 BPS16 75,000 3,750 112,500 7 BPS17 110,000 5,500 165,000 8 BPS18 150,000 7,500 225,000 9 BPS19 200,000 10,000 300,000 10 BPS 20 300,000 15,000 450,000 " BPS 21 400,000 20,000 600,000 12 BPS 22 600,000 30,000 900000 Provided that for ongoing projects, salary of existing staff shall be fixed in a way that it is not less than the salary last drawn. Provided further that projects where daily waged staff is to be hired as per requirement/ nature of project, in all such cases the monthly income of the hired staff shall not be less than the minimum wages fixed by Government from time to time. {iv) Negotiable Pay Package: Special Pay Package as determined by the administrative department shall be included in the PC-1 with full justification for such positions which ate (a) either specialized in nature, (b) Unique in terms of qualification, experience and availability of such services in market are either scarce or monopolized and (¢) highly paid. Note: In the instant case BPS system shall not apply. Furthermore, approval of such positions shall be granted by the committee headed by the Additional Chief Secretary, Planning & Development, Khyber Pakhtunkhwa (v)_ Civil Servants appointed against project posts on deputation basis will get pay and allowances corresponding to their own pay scales, a deputation allowance at the rate of 20% of the basic pay subject to the maximum of Rs.12,000/- per month, and a project allowance equal to two basic salaries last drawn on regular post; Provided that if the circumstances demand for provision of special incentives to the deputationists in a project, the same special incentives will be placed for consideration before the committee to be headed by Additional Chief Secretary, P&D with Secretaries of Finance, Establishment and concerned department as members. “NOTE: As per minimum wages notification issued by Labour Department vide Notification No. UN-SKILLED/1/161/6404-6 dated: 17.08.2022 in compliance with the recommendations of the Provincial Government.(3) PROCEDURE TO FILL THE POST If the competent authority decides to make appointment to a project post through initial recruitment, the following procedure shall be followed: (i) Applications for the posts shall be invited through wide publicity in the print media. he advertisement shall be published in at least two leading newspapers having wide circulation as well as through the official website of the project / concerned administrative department. (ii) Areasonable time not less than fifteen (15) days may be given in the advertisement inviting applications for the posts to provide adequate opportunity to eligible candidates to apply and to ensure maximum competition. However, in case of urgency, to be determined by the Administrative Secretary concerned, time for inviting applications can be reduced to seven (7) days from the date of publication of the advertisement. In case the last date for receipt of applications falls on a public holiday, the last date shall stand extended to the next working day. Urgency can be declared in such cases wherein expeditious implementation/ execution is desired in the best public interest. Without prejudice to the generality of the aforesaid, urgency can be declared if one or more of the following circumstances exist: (2) Security issues/Projection of counter narrative (b) Disaster Management/Health issues (6) Projects involving seasonal factors (q) Signature/pilot project (6) Projects at the verge of completion The terms and conditions for appointment including but not limited to following shall be clearly advertised: (a) Nomenclature of the posts (b) Pay scale or Pay Package (c) Number of vacancies (4) Minimum Qualification Required (e) Minimum Experience Required (A) Age limit at the time of closing date (g) Duration of Appointment {(h) Nature of Appointment () Mode of Appointment (Testing Service ete.) ()) Duties & Responsibilities {k) Station of duty ete. Note: Applicants with incomplete documents shall not be entertained. Minimum qualification shall be specified clearly against which clear scoring can be made. (iv) The appointing authority / administrative department, before advertising the posts, keeping in view the anticipated number of the applicants and scoring matrix approved for the posts, shall assign the conduct of test to Khyber Pakhtunkhwa Educational Testing and Evaluation Agency (ETEA) and in case of refusal by ETEA to conduct such test, services of a suitable and registered testing agency to be hired after getting NOC from ETEA. MoU signed with the testing service agency shall clearly mention passing marks in terms of percentage for a particular post. Passing score for a post in a test should not be less than 40% (v)_ Applications received for a post shall be scrutinized by the shortlisting committee (Para-8) constituted for the purpose. After thorough scrutiny of record, list of shortlisted candidates will be finalized, duly signed by all the members of shortlisting committee containing marks obtained in minimum required academic qualification, higher qualification, relevant experience, test score if any, training, age limit and other conditions strictly according to selected scoring matrix. (vi) The appointing authority/administrative department shall ensure competition in the hiring process. However, it may shortlist 03 to 05 applicants against one post for interview by the concerned Selection Committee. Furthermore, the number of candidates to be called for interviews should not be less than 03 per post in the case of posts falling in specializedcategories. Reasonable time may be given to the candidates to appear for the interview. ‘The names of those candidates who do not appear for the interview shall be dropped from the selection process. (vii) Selection Committee (Para-7) shall interview the qualified and eligible candidates and shall devise a merit list on the basis of weightages assigned to each component of the scoring matrix academic qualification, higher qualification, relevant experience, test score, professional skills as well as marks obtained in the interview. The list containing order of merit of the candidates must be signed by all members of the Committee including its chairman and forwarded to the Secretary of the department concerned to process the case for approval of appointing authority. {ix)_ The appointing authority shall approve appointment, in order of merit, on the recommendations of the Selection Committee and orders in this regard shall be issued within 10 days. In case, the first candidate on the merit list does not join service within a period of one month, his offer shall stand cancelled, after ensuring that appointment order was duly received by the candidate, and offer of appointment may be extended to the next candidate on the merit list. After completion of the hiring process in a project, a waiting list duly signed by all members of the selection committee shall be maintained. Such waiting list will be valid for 06 months from the date of issuance and any candidate on merit can be appointed during the period from the list if a post is fallen vacant due to the following reason: (2) Failure to report arrival before the stipulated deadline (b) Resignation from the post (6) Disqualification due to disciplinary action (@) Disqualification due to procedural lapse in recruitment (€) Disqualification due to non-verification of documents (f) Disqualification due to Unsatisfactory / Negative Police Report (9) Disqualification due to being medically unfit (x) Staff appointed by initial recruitment in a project shall not be entitled to pension or GP fund. They shall also not be treated as “Civil Servants”. (xi) Project employees will receive medical allowance as per medical attendance rules of the Provincial Government. They shall be entitled to TA/DA in accordance with the TA rules of the Provincial Government. (xiii) Project employees shall be entitled to avail leave as given below: (2) Casual Leave: 15 days once in a calendar year (lapsable). Maximum of § days casual leave can be granted at a time by the competent authority. (b) Long Leave: 45 days without pay, during the whole project cycle subject to cogent justification and at the discretion of the competent authority. (c) Maternity Leave: Admissible to the female employees as per Khyber Pakhtunkhwa Civil Servants Revised Leave Rules, 1981, (xiv) Additional Charge of project posts of mega projects (Rs. 3 Billion and Above) shall not be allowed to officers of line Department, For projects less than Rs. 3 Billion additional charge of project posts may be allowed to nominees of line departments on case by case basis, for a specified period, to be determined by the committee, headed by Additional Chief Secretary P&D comprising Secretaries of Finance, Establishment and concerned Department. The additional Charge Allowance will be 100% of the running basic pay. No additional charge will be allowed below BS-17 in any case. Additional charge of the post shall not be given for a period of more than 06 months. (xv) If the competent authority decides to make an appointment to a project post through deputation, the procedure given in para-4 shall be followed.(xvi) Civil Servants can apply for the project posts by following the procedure given in Para-5 hereof. In case of selection, the Civil Servants will be entitled to draw salary at market, rates, as provided in PC-L (xvii) Project Director and staff will be appointed for a period of three years or project term whichever is less. The Government will discourage frequent transfer of Project Director, officers and staff of the project during execution. However, during execution of the project, transfer of Project Director if warranted will be notified to the P & D Department. In case of poor performance, contracts of PD or project staff can be terminated at any time. (xviii) No extension will be allowed to project staff including Project Director. For cases of extreme importance, extension beyond three years or for revised extended period of the project, shall be allowed after approval from the next higher authority. (xix) Documents to report proceedings of the selection process, including list of shortlisted candidates, waiting list and final list of selected candidates shall be published on the website of concerned Administrative Department as proactive disclosure of information. (x) The entire process from advertisement til final merit list shall be completed within 03 months including the selection of Project Director, Provided that the administrative secretary concerned, under unavoidable circumstances, can extend this period for 02 additional months, after recording the reasons for delay. (xxi) After joining the project post and before payment of salary, the character antecedents shall be verified through Police and academic / experience certificates shall be verified through concerned Board/University etc. In addition, a medical certificate shall be obtained by him/her from the DHQ/ MTI duly signed by the Medical Superintendent / Head of MT. Pay scale of Project Director shall be BS-19 or above for projects costing Rs. 3 Billion or more. For other projects, Project Director shall not be less BS-18 in any case. Appointment on daily wages shall be allowed for project posts in BPS-03 to BPS-05 only and mode of appointment shall be specified in PC-1 as well as in revenue clearance of the Finance Department for this purpose. (4) DEPUTATION OF CIVIL SERVANTS TO PROJECT POSTS In case the competent authority decides to fill a post by transferring a regular civil servant to project post on deputation basis, the procedure laid down herein below shall be follow (i) The Administrative Department where the project has been initiated will provide a panel of at least 3 officers keeping in view the qualifications and other terms and conditions prescribed in PC-I for the P&D Department. (ii) The panel will be considered by the Provincial Project Selection Committee (PPSC) for selection of civil servants on deputation to project posts falling in BS-17 and above, strictly ‘on merit keeping in view the job relevance, experience and service record. Deputation to project posts less than BS-17 shall not be allowed. The constitution of the Provincial Project Selection Committee (PPSC) shall be as under: 1. Additional Chief Secretary Khyber Pakhtunkhwa Chairman 2. Secretary Establishment Khyber Pakhtunkhwa Member 3, Secretary Finance Khyber Pakhtunkhwa Member 4, Secretary P&D Khyber Pakhtunkhwa Member 5, Secretary of concerned Department (Exofficio Member) On receipt of requisition for deputation of a civil servant to a project post, administrative department will decide whether the services of the civil servant concerned be lent for the project post or not. If he can be spared for deputation to project post, the Department concerned will prepare a self-contained Working Paper for consideration ofthe PPSC, keeping in view the qualifications and other terms and conditions prescribed in PC-|, which may be circulated among all members three days before the meeting, Subsequently, notice of the meeting and working paper will be issued to all members after obtaining approval of the Chairman of the PPSC. The working paper shall, inter alia, ontain the following (2) Provisions of PC: containing details of post including pay package etc. of the post, life of project and relevant extract of PC-|; (b) Academic qualification of the officer proposed for deputation, training received and research werk done, ifany; (€) Service history including present pay scale, cadre of officer and important posts held by him with assignments; (d) Mode of appointment of officer to post presently held (ie. initial recruitment or promotion); and whether probation peried after appointment/promotion has been completed or not; (¢) Any disciplinary proceedings initiated against the officer, if so, the outcome there (f) Whether living in Government or in a private/ own house; (a) Nature of duty attached with the project post and relevance of the previous assignments of the officer with the post to which deputation is proposed; {hy Stations of duty (in present post and after proposed deputation) () Whether previously served in a project deputation basis and if so period of stay and other details; and how much period has lapsed since his repatriation from the last project assignment; () Grading of PERS/ACRs for the last five years {k) Any other information which may be helpful in disposal of the case by the PPSC (iv) Incase of deputation of a Civil Servant to a project which is fully funded by the Provincial Government, the pension contribution shall continue to be paid from the proceeds of the Provincial Government. However, in other cases, the procedure in vogue regarding pensionary/leave and other service liabilities of the civil servant shall be followed. (v) During deputation, retention of officially allotted residential accommodation shall be governed by Khyber Pakhtunkhwa Residential Accommodation Rules 2018. Payment of house rent shall be made to the relevant head of account as per provisions of the said rules. (vi) Civil Servants who are in receipt of housing subsidy shall be entitled for the said facility even after their posting in a project. (vii) The initial period of deputation will be three years extendible for another two years or till the project life, whichever is earlier. (viii) Civil servant will not be considered for deputation to a project post unless he/she has successfully completed the initial as well as extended period of probation. He/she will also not be considered for deputation unless a period of at least 4 years has elapsed after his/her return from last deputation to a project. (5) APPOINTMENT OF CIVIL SERVANTS TO PROJECT POSTS THROUGH COMPETITION (i) Any Civil Servant holding appointment on a regular basis and possessing the minimum qualification, experience and fulfilling other conditions advertised, may apply for a project post through proper channels. (ii) Incase of shortage of time, a Civil Servant may forward an advance copy of the application for the post and simultaneously submit application to the departmental authority for permission which may be furnished before interviews for the post are held.2 In the event of failure to produce departmental permission at the time of interview, the candidate shall not be interviewed or considered for appointment to the post. (iii) The department concerned of the Civil Servant shalll process her/his application in a timely manner and may forward the same to the quarter concerned. {iv) Inthe event of appointment of a Civil servant to the post through open competition, ‘she/he shall be required to obtain extra ordinary leave before joining the project provided he/she is entitled for EOL as per the Khyber Pakhtunkhwa Civil Servants (Revised Leave) Rules, 1981. Moreover, he/she shall relinquish charge once he/she is relieved by the competent authority so that his/her pensionary and other service liabilities are not accumulated against the Government for service rendered in the project. (v) Civil servants passing through probationary period and those holding appointments on contract basis may apply for project posts. However, in the event of their appointment, they shall be required to resign from government service. {vi)_ On joining the project post by availing Extra-Ordinary Leave (Leave without pay), retention or vacation of officially allotted residential accommodation shall be governed by Khyber Pakhtunkhwa Residential Accommodation Rules 2018, (vii) On completion of the project or its conversion into current budget, the services of the Project staff appointed on contract basis shall stand terminated. However, Government Servants serving in the project on deputation basis or on EOL (without pay) basis shall be repatriated to their parent department (6) CRITERIA FOR SELECTION (i) Acandidate for a project post must possess the minimum educational qualification and experience and they must be within the age limits advertised for the post. (li) Acandidate shall be a citizen of Pakistan domiciled in Khyber Pakhtunkhwa. However, in case of a post requiring highly Technical and Professional qualification and experience, the appointing authority, with the approval of the next higher authority, may appoint a candidate domiciled in any other province provided that there is no candidate available having domicile from Khyber Pakhtunkhwa. (iii) Selection for all the project posts will be based on merit on such criteria which shall be determined by the selection committee. Without prejudice to the generality of the aforesaid, the selection criteria shall be based on academic qualification, higher qualification, relevant experience etc. in accordance with any of the following criteria from (a) to (d). The desired criteria shall be specified against each post in PC-1 as well as in revenue clearance to be issued by Finance department. nn erate ed 40 30 15 Qualifeation 10 10 10 10 te 10 10 - 6 Training z Z o7 o” a . . 4s 50 (oni a = 8 2 Total 100 100 100 10022 A. Minimum Qualification: For General Cadre / Non-Technical Posts: Pace ltl a BSSEESSS0528 = ers Po ee ea el 18 20 15 12 15 12 Pte i 5. Ss 9 86 5 5 12 13 10 8 07 6 5 4 3 Lato Petes Danes er i 122 13 10 8 108 6 5 4 3 Cera 1 12 14 10 8 108 6 5 4 3 PPA Ceeatretiay Lea ee ns w076 764 33 2 Pe Coles etl Creo] NC 19 086865 43 2 PAC MA/M.Sc./Equivalent/ 29 10 8 6 8 6 5 5 3 3 Chertsey)23 For Professional / Technical Posts: Na nett Ty ONE Ces RMT Cd Sor 6s Nm 9 07675 4 33 2 2nd Professional sn 9 07676 4 3 3 2 BSCR TLE ms 1 9 08 6 8 6 5 43 2 5% 1229 08 6 86 5 5 3 3 ee DEC LTy Ty 20 15 122 13108 «07 6 5 4 3 2nd Professional 2015 12 13:10 8 107 6 5 4 3 Vilibmn) 20 15 12 144 108 08 6 5 4 3 Note: For degrees in CGPA, equivalent percentage ranges will be as under: (Sel Wad (he OC ed Tete Greater Than or Greater Than or Greater Than or equal to 2.5 equal to 3.5 equal to 60 Greater Than or equal Greater Than or equal Greater Than or equal to 1.8 and Less than 2.5 to 2.8 and Less than 3.5 to 50 and Less than 60 Less than 1.80 Less than 2.80 Less than 50 Note: Degrees / Certificates of CAJACMA/ACCA will be awarded marks of first division, B. Higher Qualification Maximum of 10 marks will be awarded for having qualification above minimum required qualification as under: One level advanced degree: 7 Marks Two levels advanced degree: 10 Marks24 Provided that extra marks shall be awarded to higher qualification only, if it is in continuation with the minimum required qualification for the project post. C. Experience Maximum of 15 marks will be awarded for experience over and above minimum required experience at the rate of 1 mark per year. Only relevant and verifiable experience will be counted. The relevant experience gained prior to or during the period of minimum qualification shall not be counted, however, experience gained during higher qualification shall be counted. However, it will not include an internship done in partial fulfillment of a degree. Internships completed under National or Provincial Internship Programs / Policies shall be counted for experience. Note: No marks will be awarded for experience under scoring matrix (c) as tabulated on the previous page. D. Training Course Maximum of 07 marks will be awarded for minimum three-month training in the relevant field from a university / institution recognized by the HEC or any Board of Technical Education or any training institute established by the Federal Government or any Provincial Government or from an internationally recognized organization. E. Test Marks obtained in test conducted by ETEA or other testing agencies, as provided under para 3(iv)will be counted under scoring matrices (c) and (d), based on its weightage in relevant matrix. Owing to Specialized and technical nature of the posts, the administrative department may decide to consider any one of the four tests, ie. GRE/GMAT/MCAT/SAT for this purpose. Scoring scales of these tests shall be converted for quantification under relevant scoring matrix in this policy and shall be duly approved by the administrative secretary concerned before advertisernent, If scoring matrix (a) or (b) is selected for recruitment of project posts in BS-11 to BS-17, having no weightage for test, conduct of test shall be compulsory and test score shall be used for screening purpose only. F, Interview A candidate securing less than 40% in an interview under the relevant scoring matrix shall be considered as failed. {iv) Zonal allocation formula shall not apply to the project posts. However, for recruitment against posts in BS-16 and below, included in projects under Merged Areas ADP and Accelerated Implementation Plan (AIP), additional 05 marks shall be awarded to the candidates holding domicile of tribal districts or tribal subdivisions, till further orders. For project employees, who have rendered 02 years continuous service in a developmental project of Govt: of Khyber Pakhtunkhwa shall be entitled for 10 years automatic age relaxation in upper age limit2s (7) COMPOSITION OF SELECTION COMMITTEES Recruitment to the project posts shall be made on the recommendations of Selection Committees. Composition of Selection Committee for appointment to posts in different pay scales or equivalent posts will be as under: (a) For posts in BS-19 and above or equivalent posts: 1. Additional Chief Secretary Khyber Pakhtunkhwa Chairman 2. Secretary Establishment or his nominee not below the rank of Additional Secretary || —————— Member 3. Secretary Finance or his nominee not below the rank of Additional Secretary —______ Member 4. For Technical posts, an expert from the echnical Department or public Sector University ———- Member may be associated with the Committee 5. Representative of P&D Department not —______— Member below the rank of Additional Secretary 6. Secretary of the concerned sponsoring Department — Member/Secretary (b) For posts in BS-17 & BS-18: 1. Secretary of the Department_|———_________ Chairman 2. Representative of the Establishment or his nominee not below the rank of Deputy Secretary —— Member 3. Representative of the Finance or his nominee not below the rank of Deputy Secretary |©—_—____ Member 4. Incase of technical posts, an expert from Technical Departments or public Sector. |_——_____ Member University may be associated with the Committee 5, Representative of P&D not below ——________ Member the ank of Deputy Secretary 6. Project Director/ Additional Secretary or ——————._ Member/Secretary Deputy Secretary, if there is no Additional Secretary in the Department (c) For posts in BS-3 to 16. 1. Project Director ———____________— Chairman 2. Additional Secretary or Deputy. ———_____ Member Secretary of the concerned Department 3. Representative of Establishment Department Member 4, Representative of Finance Department —________ Member 5, Representative of the Project Director Secretary(8) SHORTLISTING COMMITTEE 26 To facilitate the Selection Committees a Short-Listing Committee with the following composition will shortlist the candidates on the basis of their academic qualification, past experience, test scores, age limits and other conditions advertised for the post: (a) For the post of Project Director 1. Administrative Secretary concerned 2. Additional/Deputy Secretary of concerned Department 3. Representative of Establishment Department not below the rank of Deputy Secretary 4, Representative of Finance Department not below the rank of Deputy Secretary 5, Representative of P&D not below the rank of Deputy Secretary ——— (b) For other posts 1 Project Director 2. Additional Secretary or Deputy Secretary of the Department concerned 3. Representative of the Establishment Department not below the rank of Deputy Secretary 4. Representative of the Finance Department not below the rank of Deputy Secretary 5, Representative of P&D not below ———————— the rank of Deputy Secretary (9) APPOINTING AUTHORITIES Chairman Member Member Member Member Chairman Member Member Member Member Project Director would exercise the powers of appointing authority for posts in and equivalent to BS 3-16, whereas Administrative Secretary concerned would be appointing authority for all posts equivalent to BS-17 and above. However, approval of the Chief Minister, Khyber Pakhtunkhwa shall be obtained, if deputation of Administrative Secretary or Head of Attached Department to the Project posts is involved.(10) TERMINATION OF SERVICE ON COMPLETION OF PROJECT Gi) (iii) (iv) ™) (vi) A project employee shall work against that post for which she/he was recruited and shall not be transferred to any other post in the project or at any other station. Aproject employee shall also not be transferred to any other project under the same department / Government. Ifthe performance of the employee is found unsatisfactory, his/her services shall be terminated on a fifteen day-notice or payment of fifteen days salary in lieu of notice. In the event such an employee is a Government Servant, he/she may be repatriated to their parent department. At the time of appointment, each employee shall give an undertaking to the effect that during the employment, they shall be held responsible for the losses (accruing to the project due to them and shall be held answerable therefore) and shall be bound to follow the terms and conditions mentioned in the agreement provided in this chapter. On completion of the project, the services of the project employees shall stand terminated. However, they shall be re-appointed on a need basis, if the project term is extended, In case the project posts are converted into regular budgetary posts, the posts shall be filled in according to the rules prescribed for the post by the Public Service Commission or the Departmental Selection Committee, as the case may be. Ex-project employees shall have no right of adjustment against the regular posts. However, if eligible, they may also apply and compete for the posts with other candidates. (1) PERFORMANCE MANAGEMENT & EVALUATION (i) (iii) (iv) Performance of Project Directors for projects having cost above Rs. 3 billion shall be evaluated by a committee in P&DD against a Performance Evaluation Matrix. The matrix shall be reviewed and updated periodically by Planning and Development Department and will essentially include all general parameters about performance of the project focusing on timely recruitment, financial and physical progress of the project as specified in PC-|, accomplishments of project objectives, to timely assess the magnitude of deviations from the original project plan. For projects costing less than Rs. 03 billion, performance evaluation of the project directors, if any, will be carried out by the concerned Administrative Departments. Project Director shall devise an appraisal matrix for all the key staff having direct influence on progress of the project, based on targets and achievements. Annual performance of the report will be shared with the Administrative Department clearly mentioning deviations from targets, if any, and recommendations. Performance Evaluation Reports of the Government Servant shall be written by the concerned PAO during his / her appointment in the project on deputation basis and ACS P&D Department will be the Ist Countersigning Authority for the posts in BPS-19 and above or Specialized Positions under Negotiable Pay Packages. The Planning & Development Department shall introduce reward for “consistently good performing project teams”. Selection of such projects will be based on the overall performance rating of projects first after mid-term review results and second on the completion of evaluation reports by the donors. ACentralized Project Management Cell under the Special Secretary, P&D Department shall be established to monitor and resolve the issues of all the projects included in the ADP.28 AGREEMENT This agreement is made on this day of (Two thousand, and ) between Governor of the Khyber Pakhtunkhwa Province (hereinafter referred to as the Government) acting through ‘on the ONE PART and (hereinafter referred to as the employee) on the OTHER PART; WHEREAS the Government has agreed to employ the Employee and the Employee has agreed to serve the Government as _________ on the terms and conditions hereinafter mentioned; NOW these present witnesses and the parties hereto respectively agree as follows’ 1. Subject to clause 9, the employee shall serve the Government as inthe project under Department for a period of years commencing from the date of assumption of charge of the post. 2, The Employee shall: {a) devote his/her whole-time to perform his/her duties as in the Project; (b) carry out such administrative functions in relation to his/her duties as the Government may, from time to time, assign to him/her, (c) submit himself/herself to the lawful orders of the Government and of the officers and authorities under whom his/her services may be placed from time to time, during the currency of this Agreement; and (d) Proceed, whenever required, to such part of Pakistan and perform such duties relating to his/her appointment as the Government may specify. 3. a) For the services rendered, the Employee shall be entitled to receive pay as may be prescribed in this policy/PC-| and shall not be entitled to earn any annual increments during his contractual appointment. The pay of the Employee shall commence from the date of his/her assumption of charge of the post and cease on the date of termination of this agreement or on termination of his/her services for any reason, whichever may be earlier. (b) The Employee shall, if required to travel in the public interest be entitled to receive traveling allowance at such rate as may be prescribed, and (c)_ The Employee shall not, unless permitted by the Government, indulge in private practice, nor shall he indulge, directly or indirectly, in any trade, business or occupation, and in any political activity whatsoever, other than his obligations under this Agreement. 4. In the event of misconduct as defined in the Khyber Pakhtunkhwa Government. Servants Conduct Rules 1987 or breach of any of the terms and conditions specified herein or in the PC-| or this Policy on the part of project employee, except deputationist29 or those Government Servants who joined the project on Extra Ordinary Leave (Leave without pay), a fact finding inquiry shall be conducted. If charges are proved his/her services shall be terminated, besides recovery in case of pecuniary loss to the project. The appointing authority, in such cases, shall be the competent authority in respect of the project staff, other (Leave without pay). Ifa deputationist or those who join the project on Extra Ordinary Leave (Leave without pay), are involved in misconduct or breach of terms and condition or cause pecuniary loss to the project, they shall be repatriated to their parent department with proposed action, recovery and penalty which shall be decided by their respective competent authorities. 5. If the performance of the ernployee is found unsatisfactory, his/her services shall be terminated on fifteen days notice or payment of fifteen days salary in lieu of notice. In case of a Government Servant, he may be repatriated to his/her parent department. 6. The Employee shall be held responsible for the losses accruing to the Project due to his carelessness or inefficiency and shall be recovered from him 7. The employee shall be entitled for TA/DA in accordance with the TA rules of the Khyber Pakhtunkhwa. 8. The Employee shall not be entitled to any pension or gratuity for the service rendered by him; 9. Either party to this agreement may terminate the agreement by giving to the other party fifteen days notice in writing of its intention to do so and on the expiration of such notice this agreement shall be terminated Provided that where no notice is served or served of a shorter period, the defaulting party shall pay to the other party an amount equal to the pay of the employee for the period of fifteen days or for such period by which the notice falls short, as the case may be’ 10. On completion of the project, the services of the employee shall be terminated. He may, however, be re-appointed if any phase of the project is there. Ti. Starnp Duty, if any, on this instrument shall be borne by the employee. In witness whereof the said and on behalf of the Government have hereunto set their hands first above written. Signed by In the presence of: Witness 1 2 Signed by In the presence of, Witness 1 230 It shall come into force at once and shall not affect the terms and conditions of the staff already working in the projects. Unless specified otherwise, all recruitments to project posts shall be carried out using this policy (even if PC-Iis silent on mode of recruitment). This is usually the preferred mode for all first level managers and middle managers. Recruitments Using Recruitment Policy for Market Based Talent This policy may be followed for senior positions such as Project Director, Deputy Project Director, CFO or equivalent, Chief Technical Officer or any other specialized expertise/ skills set. PDWP (or higher forum) shall be categorically apprised of the circurnstance those warrant use of this mode. The relevant committees vis-a-vis Short Listing Committee, Aptitude Test Committee and Selection Panel shall be approved by PDWP. Once approved by PDWP, the concerned department shall carry out the hiring process as per set criteria and shall submit the recommendations for approval to administrative secretary in case of PD whereas for remaining positions, PD along with a committee constituted by the administrative secretary shall accord approval. The salary ranges shall also be approved by PDWP. For budgeting purposes, middles of the range may be mentioned in PC-| cost estimates, however, the selection panel shall be competent to decide upon the final offer. The PC-| may use in vogue MP scales to benchmark the salary ranges. For positions opting for this mode of recruitment, the Project Director shall preferably get third party validation of the process. Recruitment Using MP Scales Policy The Federal Government has notified the Management Position Scales Policy, 2020, vide OM. No. 1/3/202-E-6, amended vide O.M. No. 1/3/2020-E-6 to establish a mechanism by which individuals may be hired on MP Scales. As against any previous MP Policies notified by the Federal Government, where the emphasis was mainly on pay scales, however, the year 2020 policy mentions the mechanism of hiring individuals as well. Before putting this into practice, under Project Implementation Policy, the Establishment Department of Government of KP shall formally notify its adoption after fulfilling codal formalities. Once notified, for specialized positions, the PC-I may opt for this mode. If any such post within the project requires a resource with a highly specialized or technical knowledge based skill set, such that neither the KP policy regulating appointment to posts in development projects, 2008, nor the Recruitment Policy for Market based Talent, 2019, result in the identification or selection of such a resource, then the Project may decide to recruit through the Management Position Scales Policy, 2020. Customized Mode of Recruitment For certain projects, where the approval forum is PDWP or higher, there can be instances where neither of the above three modes of recruitment are suitable for the type of HR required. In such instances, PDWP projects may, after providing sufficient justification, resort to a customized mode of recruitment and salary packages, contingent on approval of relevant authorities.x Engaging Human Resource through Third Party Firms The project may engage a third party to provide for the requisite human resource for a particular project. This mode may be adopted for a variety of positions/ skills set. Some of examples include: (i) Doctors, nurses, paramedics, teachers required for a project (ji) Computer software or hardware or networking engineers required for development or maintenance of system (iii) Data entry operator (with or without laptops/ computers) required for a project (iv) Entomologists, epidemiologists required for a project (v) GIS specialists along with their requisite equipment (with or without mobility) and/or with or without android or any other devices The individuals so provided by third party firms shall not have individual contracts with the project rather they shall be on payroll of third parties. Third parties may be given a certain management fee for managing these contracts. The project shall mention the eligibility requirements to the third party along with either fixed remuneration or may ask remuneration to be part of the submitted bid. In order to ensure that there are no intermediary fees (except management fee), the project may require a third party to make all payments through the bank accounts of individuals. Similarly, only the process for recruitment under pre-agreed criterion and methodology may be outsourced and HR so recruited may be offered contractual position. Hiring of Project Staff Under KP Procurement Regime Hiring of specialized staff may also be done through KPPRA Procurement Regime (KPPRA Act 2012), The procedure given for individual consultants/expert/advisors/ Staff can be used to define a criteria based on qualification and experience of the applicant. After shortlisting, detailed interviews can be held as per prescribed procedures. Process of Recruitment Under Various Modes Subject to any changes subsequently made in this Policy , PC-1 may allow the project to outsource one or more steps of recruitment process including receipt of applications, evaluation/ shortlisting of applications, conduct of one or 2 stages of written test, interviews, finalization of selected candidates, joining, posting plans and/or orientation. Outsourcing Entire Process of Recruitment The PC-| may also choose to outsource the entire hiring process, to ensure that all processes, up to the final selection, are done in a transparent, meritocratic manner.32 > Chapter 5: Practice of Revenue Clearance Project implementation is a specialized task and timely execution of a project requires focused and dedicated efforts. This section deals with the due diligence aspect carried out during any PC-I appraisal (both initial approval and subsequent revisions). The due diligence aspect for the capital component of a project is usually carried at the level of P&D, whereas whatever is reflected on the revenue side, is considered part of revenue clearance at the Finance Department. This chapter of Project Implementation Policy deals with a more pragmatic approach and intuition behind revenue clearance. Khyber Pakhtunkhwa Delegation of Financial Powers Rules, 2018, notified vide letter NO.SO(FR)/FD/9-1/2018/DOP/7441KP give absolute authority and power to P&D for approval of development schemes at level of PDWP [above Rs 200 Million) and similarly to other respective forums. The current practice of revenue clearance for the entire revenue component rests on the principle that any long term liability in terms of SNEs, vehicles etc,, shall be with the concurrence of the Finance Department. However, the underlying presumption is that the development schemes have a large capital component (like road or building schemes) and a very minor revenue component. This presumption is no longer true with all innovative projects comprising a significant pie of overall development portfolio such as stipends, and micro finance loans, etc, Projects such as hospitals, with significant machinery and equipment components, or schools where furniture for students and laboratories is cleared through revenue clearance, rather than due diligence at concerned sections of P&D. Revenue Clearance at Finance Department The instant Project Implementation Policy allows revenue clearance at the Finance Department only in respect of items which create long term liability, such as SNE or any equipment that has substantial maintenance costs beyond the project life. Instances Where Revenue Clearance May Be Required at Finance Department The following examples shall help in understanding instances where Revenue Clearance at the Finance Department is required: Scheme of school upgradation/ girls stipend, revenue clearance will be required ONLY for any PMU posts being recruited on BS scales HM Outsourcing of equipment (where equipment remains property of service provider) like CT Scan, MRI etc., provided contractual obligations go beyond project life (for example MRI is installed on a 7 year contract with yearly pay for performance basis payments. In case PC-I life is only 2 years but payments will continue for 7 years, in such case revenue clearance will be required. Any project posts in PMU or otherwise those are fixed pay positions and have direct equivalence with BS regime33 Revenue Clearance at P&D In case any line item in the revenue component of a project is not creating any long term liability, the due diligence shall be carried out at the level of P&D, instead of revenue clearance at the Finance Department. Most notably, all core equipment of the project, outsourced support functions such as janitorial, security, supply chain and warehousing etc. are expenditures limited to the project life only, and have no long-term implications. Hence, they shall be excluded from revenue clearance of the Finance Department. Instances Where Revenue Clearance May Be Required at P&D The following examples shall help in understanding instances where Revenue Clearance at P&D is required: m Scheme of school upgradation, no revenue clearance required for furniture for students and teachers, laboratory equipment etc. m Equipment of hospitals for upgradation/ new hospitals Stipend to girls student for high school (the scheme's core function is stipend and will continue during project life only) Outsourcing of support functions like janitorial, security etc. MM Outsourcing of equipment (where equipment remains property of service provider) like CT Scan, MRI etc. provided contractual obligations go beyond project life (for example MRI is installed on a 7 year contract with yearly pay for performance basis payments. In case PC-I life in 7 years (no revenue clearance required). lm Any project posts in PMU or otherwise those are fixed pay positions and have no equivalence with BPS regime Purchase of books under Directorate of Archives and Libraries in higher education department Disbursement of stipend to school going children under AIP program in E&SE department lf Hiring of teaching staff in government colleges under PMU or higher education programs etc. Revenue Clearance for HR With regard to human resource, the regularization of project staff in the past successive tenures of Governments has created the potential risk of long term liability. The instant policy has provided for multiple routes for recruitment of project staff. Furthermore, regularization is only associated with BS scales; no regularization can take place for special / fixed pay packages/ MP Packages. Hence the Project Implementation Policy requires only those project posts to be considered for revenue clearance, which are recruited on BS scales. For all fixed pay/ special pay or MP based positions, the due diligence at level of P&D shall be carried out34 ) Chapter 6: Procurement Management for Projects Procurements remain an important component of project execution. Good project management includes ensuring that all components of the project vis-8-vis civil works, goods procurements and human resources are completed in a manner such that service delivery of the project shall commence at the earliest. However, there has been a tendency to take a conservative view and start procurement as a sequential step after civil works. This is, at times, also driven by the absence of adequate storage for these equipment/ furniture, Resultantly, even after completion of civil works, service delivery cannot commence. Relevant Rules for Procurement All procurements under projects are carried out as per Khyber Pakhtunkhwa Public Procurement of Goods, Works and Services Rules, 2014, notified vide letter No.SO (FR\/FD/9-7/2010/Vol-Il, and as amended from time to time. The instant Project Implementation Policy elaborates the manner in which the procurement rules are put into practice in project setting. The provisions of KPPRA Rules, therefore, shall have an overriding effect Mode of Procurement Once the project is approved, it shall be the authority of the PD to determine the most appropriate method for procurement. This has been legally covered under section 33 of KPPRA Act that it is the authority of the procuring entity (Project authority in this case) to select the most appropriate method for carrying out procurements. Devising bid solicitation documents (BSD) and specifications, TORs, evaluation criteria, all rest with the project authority and that is the reason PD of the projects has been classified as Category-| officer in Delegation of Financial Powers Rules 2018. Procurement Process The Project Director shall constitute all relevant procurement committees, such as for devising BSD (specifications/BOQ/Drawing/Design/Evaluation Criteria/ Type of contract etc) and if required, a sub-committee for technical evaluation, a committee for Grievance Redressal and a committee for physical inspection as per provisions of KPPRA Procurement Rules 2014, For observance of codal formalities, the project director shall be responsible. Constituting Committees for Procurements in Projects During preparation of PC-I/ revision of PC-I, the committees mentioned in this chapter may be mentioned. However, in case PC-|is silent, and the nature of project so requires, Project Director may constitute one or more of following procurement committees/ subcommittees.35 Procurement Committee This is an overarching committee and shall have ultimate responsibility and authority to approve recommendations of other sub-committees, Normally the Project Director may head this committee. However, PD may assign someone under them to head this Membership may include representatives of administrative departments; though this remains purely optional. Procurement Sub-Committees One or more sub-committees may be notified to support and assist the primary Procurernent Committee amongst following Technical Specification Committee This committee will be responsible for finalizing specifications of goods/ equipment/ furniture, services/ consultant's specifications and deliverables. Tender Committee This committee shall initiate the tender process and shall carry out steps like publishing of ad (if required), pre-bid conferences, receiving of bids. Technical Bid Opening Committee Once bids have been received by the tender committee, they shall hand over the technical bids to the technical evaluation committee. They shall evaluate bids and upload technical evaluations Note: in case of pre-qualification/ EOI, technical bid opening committee may also evaluate the bid against pre-qualification criterion Financial Bid Opening Committee After technical evaluation is completed, the tender committee shall handover financial bids of technically qualified bidders to the financial opening cornmittee that shall open the bids. Procurement committee based upon technical and financial evaluation shall finalize the overall evaluation and shall upload final evaluation Physical Inspection Committee ‘Once goods or services are delivered, this committee may verify the physical quantities and conformance with specifications. Grievance Committee Grievance committee shall be constituted to decide upon grievances. Usually, mid to senior level officers from the Administrative Department shall chair this committee.36 Membership is different from other committees to ensure impartial redressal with the exception of one individual (who may serve as secretary of the grievance committee) Additionally, the Grievance Committee shall ensure the application of, and compliance with, the Khyber Pakhtunkhwa Public Procurement Grievance Redressal Rules, 2017, Notified vide No, SO(FR)/FD/9-7/201/Vol- I Price Reasonability Committee The PD has to make a price reasonability committee to determine if price is reasonable or not, especially for high cost procurements. Mode of Procurement An important decision during procurement of equipment is mode of procurement. Commonly used Inco Terms like DDP, C&F or any other are admissible. The decision regarding choosing one mode over others or seeking bids for more than one mode clearly indicating preferred mode for evaluation of bids may be decided upon by the committees and shall be reflected in procurernent documents. Depending upon project nature, the Project Director and Procurement Committee may ask for third party inspections of firms both in case of local and imported firms. The third party inspection is a preferred mode, in case monetary volume of a particular item is high or quantities are high or complex items are being procured. For imported items, third party pre shipment inspection may be invoked too. In order to meet with the costs involved, preferably PC-I shall provide for some funds. However, some of the third party inspections, after mentioning in procurement documents, may be carried out at the vendor's cost. Supply Chain Management An important reason for delayed project execution is delayed procurement of goods (equipment, furniture etc, on account of non-availability of space to store these items. In order to address this issue, PC-1 and/ or Procurement Committee may opt for procuring services of supply chain, warehousing and transportation service providers. Similarly, the procurement documents may allow for partial payment upon receipt of procured items and the balance payment after successful installation and operationalization Service Level Agreements In order to have long term operationalization of procured items, service level agreements may be made part of procurement by the Procurement Committee (say 3 to S years). However, it shall be either quoted separately or some percentage (say to 2% to 5% for each year) of total bid may be retained for each completed year and respective part shall be paid on each successful year completion,